Damascus-Sana
President Bashar Al-Assad issued today Legislative Decree No. (23) for the year 2020 to exempt the loans previously granted by the Agricultural Cooperative Bank for those affected by the fires that recently broke out in the governorates of Lattakia, Tartous, Homs and Hama from all the contract interest, interest and delay penalties resulting from them, and are set aside on the effective date of this decree.
The following is the text of the decree:
Legislative Decree No. (23)
President of the Republic
Based on the provisions of the constitution
Article (1)
The words mentioned in the course of implementing the provisions of this Legislative Decree have the meaning indicated next to each of them:
Bank: Agricultural Cooperative Bank
Afflicted: Anyone who caused damage to his property or the land he invests as a result of the fires that broke out in the governorates of Lattakia, Tartous, Homs and Hama.
Article (2)
The period of damage from fires to those affected is determined in accordance with the provisions of this legislative decree from 8-10-2020 to 10-12-2020 for the governorates of Homs, Tartous and Latakia, and from 8-31-2020 until 9-11-2020 for Hama governorate.
Article (3)
A- The loans previously granted by the bank to those affected, whether they are due or not, shall be exempt from all contractual interest, interest and delay penalties resulting from them, and are set aside on the effective date of this legislative decree.
B - The balances of the capital of the loans covered by the provisions of this legislative decree shall be scheduled on the date of its enforcement and for a period of ten years in equal annual installments and uniform maturity dates.
And that is after excluding the contract interest and the interest and penalties for delay thereof.
The first installment will be due on 1-8-2021.
C - The contract interest, delay penalties and interest paid before the entry into force of this legislative decree are not refunded and are considered revenue for the bank.
Article (4)
The bank shall re-lend to the affected people who wish to do so, whether those whose loans have been scheduled or others affected by short, medium and long-term loans at a rate of 100% for the purpose for which they are required to be loaned with granting them grace periods in proportion to the type of loan and according to the bank’s operations system in accordance with the terms and conditions set forth in this legislative decree.
Article (5)
The right of the borrower to benefit from the provisions of this legislative decree shall be forfeited if part or in whole fails to pay one of the debt installments until after the next installment is due without a legal reason, and the borrower then demands payment of the loan with the contractual interest, interest and delay penalties resulting from it, and the balances of the loans covered by its provisions are returned to their original accounts. The bank follows the method of compulsory execution on the client’s funds in accordance with its enforceable regulations and instructions.
Article (6)
Those affected by the provisions of this legislative decree benefit from the loans granted through the national project to convert to modern irrigation.
Article (7)
A- The loan capital balances that have been scheduled under the provisions of this legislative decree are subject to contract interest at a rate of 11 percent annually.
B - The new loans granted to those affected are subject to an interest rate of 3 percent, to be paid in full from the interest rate support program.
Article (8)
Scheduled loans shall continue with the same previous guarantees, and all debtors, principal, guarantors, and heirs of the original to whom the ownership or right to investment has devolved remain committed to repaying the debt until full payment.
Article (9)
The bank must coordinate with the Central Bank of Syria by scheduling all debts owed by it in the equivalent of scheduled loans under the provisions of this legislative decree, taking into account the provisions of Article (6) thereof, for a period of ten years on equal annual installments and standardized maturity dates, the first installment of which is due on 1-8. 2021.
Article (10)
Each branch of the bank re-supplies ten debt bonds stamped with the official seal of the entire debt owed to the Central Bank of Syria suspended on the effective date of this legislative decree and submits them to the relevant Central Bank of Syria branch for rescheduling in accordance with the provisions of Article (9) of this legislative decree.
Article (11)
Loans granted to those affected are processed in accordance with the provisions of this legislative decree at the Central Bank of Syria at 100 percent of the total loan capital amount.
Article (12)
The aggrieved party who obtains credit facilities from one of the operating banks will benefit from the provisions of this legislative decree, even if the degree of his credit rating is in the second or third stage in accordance with the controls of the Monetary and Credit Board.
Article (13)
Those affected are determined to be entitled to benefit from the provisions of this legislative decree according to lists issued by the Ministry of Agriculture and Agrarian Reform and specify the data to be included in these lists according to the executive instructions.
Article (14)
The provisions of Law 26 of 2015 regarding settlements shall continue to apply to those wishing to schedule their debts according to its provisions.
Article (15)
The provisions of this legislative decree do not apply to loans granted through the European Investment Bank.
Article (16)
The period of validity of the provisions of this Legislative Decree is limited to six months, starting from the date of its enforcement.
Article (17)
The executive instructions for this legislative decree are issued by a decision of the Minister of Finance.
Article (18)
This legislative announcement to be distributed in the official newspaper.
Damascus 3-3-1442 Hijri corresponding to 10-20-2020 AD.
President of the Republic
Bashar Al-Assad
